Issue link: http://www.insightdigital.biz/i/621384
w w w . i n s i g h t o n b u s i n e s s . c o m J a n u a r y 2 0 1 6 • I NSIGH T | 25 I N S I G H T O N W E A L T H MANAGEMENT B y N i k k i K a l l i o T he boomers are changing everything. As more baby boomers make the mass exodus from their working life to retirement, the shi is impacting not only the face of the workplace, but the distribution of wealth as well. is massive demographic shi will impact the economy in the way wealth is managed, particularly for future generations and for philanthropy. "ere are obviously a lot of baby boomers who want to retire and go from punching the clock every day to living the good life," says Mark Scheffler, founder of Appleton Group. "And that type of demographic shi — when you have that many people moving out of the workforce — it certainly creates opportunity for people who are coming into the workforce as well." ose young people entering the workforce or just leaving college — the children of those baby boomers — are also a big influence on the way boomers are managing their money, says Michael Mahlik, president of Legacy Private Trust in Neenah. Many baby boomers might believe their children aren't going to have the same level of financial stability as they had, Mahlik says. Millennials coming out of college have an increasing debt burden preventing them from purchasing homes, for example. "Even being as well-educated as (millennials) are, they in many cases are debt-burdened, and baby boomers aren't as certain about their future prospects people will live for several decades aer retirement, is requiring more careful financial planning and a balance between giving and supporting personal interests, Detjen says. e failure of the stock market to meet expectations in recent years is also a major influence in wealth management and giving. For the past 15 years, the markets have dramatically underperformed according to their historic average, Scheffler says. "Everybody wants to give, everyone wants to be good citizens," Scheffler says. "But it's been our experience that donations have really started to tail off. e reason for that is pretty straightforward: People make donations when they feel wealthy." Donations to nonprofits and philanthropies are climbing back to where they were in 2006 and 2007, but it's that up-and-down pattern that makes it tough for nonprofits to plan and expand. "When markets start to Generation shi As boomers retire, wealth and philanthropy are transitioning, too in terms of their economic well-being," Mahlik says. "So baby boomers are focusing primarily on their own retirement, but also on the long-term financial security of their children." Boomers are sometimes turning to trusts, not so much for tax advantages, but to help their kids have professional management in place to protect against the unexpected events of life, such as divorce, accidents or bankruptcies, he says. Additionally, many baby boomers are caught in that sandwich generation, where they still have children finishing school as well as elderly parents. at can have an effect on the level of giving they plan on, says Curt Detjen, president and CEO of the Community Foundation of the Fox Valley Region. "ose factors are all very primary of course and many times will postpone some of the impact of their charitable giving," Detjen says. e realities of those other financial obligations, and the reality that many [continued] » Mark Scheffler Michael Mahlik Curt Detjen